[OutsiderFan]

Buried in the Fed panicking news, they have said banks can reduce their reserve requirements. Can someone explain to me why this is not a terrible idea?

I remember in 2008 pulling all of my money out of Washington Mutual as it was rumored to be failing. With lower reserve requirements, if there is even a hint that a bank is in trouble and people want their money out, the bank may not have it if too many try to move their money at once. Hell, people could see 0% interest and conclude it’s better to take out their money in cash.

Dow Futures trading was halted tonight after they dropped 5%. We might set the record for biggest single drop in market history for the 3rd time in a week on Monday. Good thing most people will be at home, unable to jump out of high rise windows - LOL!

[OutsiderFan]

Buried in the Fed panicking news, they have said banks can reduce their reserve requirements. Can someone explain to me why this is not a terrible idea?

I remember in 2008 pulling all of my money out of Washington Mutual as it was rumored to be failing. With lower reserve requirements, if there is even a hint that a bank is in trouble and people want their money out, the bank may not have it if too many try to move their money at once. Hell, people could see 0% interest and conclude it’s better to take out their money in cash.

Dow Futures trading was halted tonight after they dropped 5%. We might set the record for biggest single drop in market history for the 3rd time in a week on Monday. Good thing most people will be at home, unable to jump out of high rise windows - LOL!